DWP stopped taking automatic Budget Loan repayments - Now owe money- who's at fault?

onredbull

My friend applied for a bugeting loan and was refused, so she left it for 6-12 months, then tried again, and was told no again. So asked why and was told that she owed money from previous loans, dating back 3-4 years ago.

She has the same bank details as has her single mum benefits are paid into this bank account and they (DWP) used to take the loan repayments out automatically as its set up to. Im sure something is signed to agree to repayments being taken out of your benefits before you get them?

The thing is, she now thinks that it could quite well be possible that she does owe some money from 3-4 yrs ago, but she isnt in a great financial position at the moment (reason for applying for budget loan)

How would she stand in regards to the fact that they stopped the loan repayments, she hasnt changed any details.

How could it be argued that its their fault for not taking the repayments out of her benefits like the agreement is/was.
And I understand that they (DWP) will say its not their fault as they are always right.

Will she be liable to clear this debt off and if this is the case, why have they not made her as she has applied twice, so would have flagged up on their system ?

Hope this isn't too confusing.

[Deleted User]

looks like she still owes the money and will have to make arrangements to repay it,did she not realise they had stopped taking it from her benefits at the time?

onredbull

Thanks for reply.
No she got herself into debt and going through a bad time with being a single mum and post natal depression and had to move, thats why she got the loan.

GrungeMeister

Maybe it was the DWP's fault that they didn't take the payments from her benefit on time.

But your friend shares the responsibility to ensure that DWP are making the right deductions from benefit, she should've raised it with them ages ago. It doesn't matter that she wasn't well at the time, they'll simply say that if she was that unwell someone else should've been dealing with her finances.

She'll just have to chip away at the balance, pay more off. But the whole Social Fund scheme is being scrapped in April 2013, after that there's no more crisis loans, budgeting loans or grants anyway.